Lagos — The agitation for local content in the oil and gas industry recently got a boost from the House of Representatives, whose piece of legislation seems the boldest attempt to make Nigerians maximally benefit from the oil and gas endowment in the country.

Before now, the country's oil industry has, merely been run from incoherent Acts, decrees and shallow guidelines; most of which have now been assembled in the new legislation.

Before now, Nigerians who work in the petroleum sector had often suffered all kinds of discrimination, marginalisation and even oppression, in their own land and for their own natural resource.

The practice had been to place a ceiling beyond which no Nigerian can rise, all in the name of technical expertise. That explains why more than 50 years of oil exploration in Nigeria, a Nigerian was not deemed fit enough to head any of the oil companies, until very recently in Shell Petroleum Development Company (SPDC).

In fact, the so-called expatriates have often mystified their said technical skill when they "import" even base technicians and put on them the label of technical expatriates, for jobs many Nigerians are qualified for. The result is that several positions that can be occupied by Nigerians are surrendered to foreigners thus worsening not only the job placement index in Nigeria, but further weakening our economy. Yet even more decisive is the soon-to-be-passed Petroleum Industry Bill which we believe will revolutionise the oil sector operations. Rightly, the House Committee Chairman on Petroleum (upstream), Hon. Bassey Otu noted that "we support the local content development and we know that the PIB cannot succeed without a well-regulated local content environment." It is against this backdrop that we must appreciate the bold and courageous effort of the honourable members of the House of Representatives in addressing the skew in the oil and gas industry. This is on the belief that when both laws are in place, the oil sector will not only be better regulated, but also that it will be more growth-oriented.

It is indeed soothing to know that the legislation is quite far-reaching. The new law stipulates that Nigerians must be reasonably and visibly involved in all the oil and gas exploration and marketing processes.

The joint committees on Petroleum (Upstream) and Gas resources of the House have recommended that within four years of the enactment of the law, all oil companies operating in the country must have their management cadres dominated by Nigerians.

Beside job placement issues, the new law stipulates that even in the commercial aspect of the sector, Nigerians "shall be given first consideration in the award of oil blocs, oil field licenses, oil lifting licenses and shipping services; and all projects for which contracts are to be awarded in the Nigerian oil and gas industry."

The law, not sparing anything, also demands that even in succession matters, Nigerians must be favoured in such a way that any top management position not presently held by a Nigerian, should be subsequently filled by a Nigerian after due training and understudying have been provided. Besides, training Nigerians within and outside Nigeria has become compulsory for oil industries so as to equip Nigerians with the requisite technical and management skill that can keep them in the commanding heights of the oil industries.

And to ensure that the oil companies do not circumvent the rules, they are expected to submit to the Nigerian Content Monitoring Board, not only the number of employees hired each quarter, but also an effective plan on transfer of technologies from the operators and alliance partners to Nigerian individuals and companies."

Beside the demand that all junior and intermediate level staff must be Nigerians, the law also requires that for any contract valued at more than $100 million, "the operator must include a labour clause indicating the minimum number of Nigerians to be involved."

No doubt, the local content law is far reaching and daring, so is the PIB. We hardly can wait for their quick passage and signing into law.

We commend the courage of the lawmakers in repositioning Nigerians to take charge of the resources in their country. We must, however, warn that the essence and logic of the local content policy must neither be abused nor subjected to the notorious Nigerian factor-a euphemism for bungling every good policy. Nigeria and Nigerians must feel the positive effect of greater participation in the oil sector.